[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5506 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5506
To amend title I of the National Housing Act to, for financing
alterations, repairs, and improvements to, or conversion of, existing
structures, modify premium charges and the dollar amount limitation on
loans, including energy efficiency home improvements.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 17, 2014
Mr. Huffman (for himself and Mr. Heck of Washington) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To amend title I of the National Housing Act to, for financing
alterations, repairs, and improvements to, or conversion of, existing
structures, modify premium charges and the dollar amount limitation on
loans, including energy efficiency home improvements.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Home Improvement Loan Modernization
Act of 2014''.
SEC. 2. MODIFICATION TO PREMIUM CHARGES ON FINANCING CERTAIN
ALTERATIONS, REPAIRS, AND IMPROVEMENTS TO, OR CONVERSIONS
OF, EXISTING STRUCTURES.
Subsection (f) of section 2 of the National Housing Act (12 U.S.C.
1703(f)) is amended--
(1) in paragraph (2), by striking ``paragraph (1)'' and
inserting ``paragraphs (1) and (3)''; and
(2) by inserting at the end the following new paragraph:
``(3) Financing alterations, repairs, improvements, or
conversions.--Notwithstanding paragraphs (1) and (2), in the
case of a loan, advance of credit, or purchase in connection
with insurance granted under subparagraph (A)(i) or
subparagraph (B) of paragraph (1), the premium charge for such
insurance shall be paid by the financial institution providing
the loan or advance of credit, as follows:
``(A) At the time of the making of the loan,
advance of credit, or purchase, a single premium
payment in an amount not to exceed 2.75 percent of the
amount of the original insured principal obligation.
``(B) In addition to the premium under subparagraph
(A), annual premium payments during the term of the
loan, advance, or obligation purchased in an amount not
exceeding 1.5 percent of the remaining insured
principal balance (excluding the portion of the
remaining balance attributable to the premium collected
under subparagraph (A) and without taking into account
delinquent payments or prepayments).
``(C) Premium charges under this paragraph shall be
established in amounts that are sufficient, but do not
exceed the minimum amounts necessary (as determined
based upon risk to the Federal Government under
existing underwriting requirements) to maintain a
negative credit subsidy for the program under this
section for insurance of loans, advances of credit, or
purchases in connection with--
``(i) financing alterations, repairs, and
improvements for single-family structures; and
``(ii) financing alterations, repairs,
improvements, or conversions of an existing
structure used or to be used as an apartment
house or a dwelling for two or more families.
``(D) The Secretary may increase the limitations on
premium payments to percentages above those set forth
in subparagraphs (A) and (B), but only if necessary,
and not in excess of the minimum increase necessary, to
maintain a negative credit subsidy as described in
subparagraph (C).''.
SEC. 3. MODIFICATION TO LOAN LIMITATION FOR FINANCING CERTAIN
ALTERATIONS, REPAIRS, AND IMPROVEMENTS TO, OR CONVERSIONS
OF, EXISTING STRUCTURES.
Subsection (b) of section 2 of the National Housing Act (12 U.S.C.
1703(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)(i), by striking ``$25,000''
and inserting ``$42,000'';
(B) in subparagraph (B)--
(i) by striking ``$60,000'' and inserting
``$101,888''; and
(ii) by striking ``$12,000'' and inserting
``$20,378''; and
(C) in the matter after and below subparagraph (G),
by adding at the end the following: ``The Secretary
shall, by notice, annually increase the dollar amount
limitation in subparagraph (A)(i) and subparagraph (B)
(as such limitations may have been previously adjusted
under this sentence) in accordance with the index
established pursuant to paragraph (12).''; and
(2) by adding at the end the following new paragraph:
``(12) Annual indexing of loans for financing alterations,
repairs, and improvements to, or conversions of, existing
structures.--Not later than 1 year after the date of enactment
of the Home Improvement Loan Modernization Act of 2014, the
Secretary shall develop a method of indexing to annually
increase the dollar amount limitations established in
subparagraph (A)(i) and subparagraph (B) of paragraph (1). Such
index shall be based on the Consumer Price Index for all urban
consumers (CPI-U) computed by the Bureau of Labor
Statistics.''.
SEC. 4. MODIFICATION TO LOAN LIMITATION FOR ENERGY EFFICIENCY HOME
IMPROVEMENTS.
Subsection (b) of section 2 of the National Housing Act (12 U.S.C.
1703(b)), as amended by section 2 of this Act, is further amended by
adding at the end the following new paragraph:
``(13) The dollar amount limitations otherwise applicable
under subparagraph (A)(i) and subparagraph (B) of paragraph (1)
(as adjusted by paragraph (12)) may be increased up to 150
percent of such limitation if at least half of the amount will
be used for energy conserving improvements or the installation
of solar energy systems (as defined in the last paragraph of
section 2(a) of this Act).''.
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